Why Are Luxury Brands Actually Targeting People Like You?

Have you ever noticed? Many people, both on social media and on the streets, buy luxury branded products that they own. show off your breasts exhibits. In fact, this situation has reached such a point that most people carry products with the logos of these luxury brands on them, like walking billboards.

Even if we don’t hang around rich people, we often see luxury products being used everywhere we turn our eyes, even in our immediate surroundings. Louis Vuitton, Alexander McQueen, Gucci, Dior, Prada… These luxury brands with high price tags are now frequently encountered. So is this because people are getting richer?

The group we call rich refers to approximately 1% of the world’s population.

Before delving deeper into the subject, read the article prepared by Forbes. the richest people in the world Let’s take a look at the compiled list.

1. Bernard Arnault and his family ($219.2 billion)
2. Elon Musk ($201.6 billion)
3. Jeff Bezos ($195.9 billion)
4. Mark Zuckerberg ($164.8 billion)
5. Larry Ellison ($144.9 billion)

Now let’s take a look at Mark Zuckerberg’s style. Can you see any branding?

The answer is of course no. Maybe it could even be a decent LC Waikiki t-shirt, we don’t know. But deep down you think it’s a luxury brand, right?

So you guessed it right. Simple t-shirt with Mark Zuckerberg on Brunello Cucinelli brand and price 450 dollars around. However, it looks no different from the simple t-shirt we wear to bed, right?

This is exactly the essence of the matter. True wealth is quiet and does not require showing off.

In other words, everyone already knows that Bernard Arnault and his family, Mark Zuckerberg or Jeff Bezos in the photo are rich. That’s why these people are adorned with the logos of luxury brands and He doesn’t feel the need to buy things that scream “I am a brand”.

What about people with this style? Aren’t they rich?

This is where two concepts come into play. “Old money” and “new money”.

Which we can translate as “old money” “old money” The concept is used to reflect the style of wealthy family members. People with the old money style generally reflect luxury in an understated way. good quality and classic prefers parts.

Meaning “new money” “new money” The concept is simply used to reflect the style of people who found money later. In other words, it generally refers to wealth acquired more recently or in a short period of time. People with the new money style usually ostentatious and eye-catching Focuses on pieces, brand emphasis and luxury look.

In other words, these people are actually trying to express themselves with their newly acquired wealth and to emphasize their social status We can say that they are working.

Luxury brands consciously target the middle class, not the rich.

Let’s think about it this way. The rich appeal to the 1%, but it is impossible to sell to the entire 1%. Considering other factors, the rich 1% about 0.1% A proportion like this may be in the target audience of a brand.

Therefore, instead of targeting this small group that is not interested in showing off, luxury brands are targeting a group estimated to consist of approximately 350 million people. It aims to sell to the middle class.

Luxury brands make money precisely from this middle class’s effort to prove itself!

The main reason why real rich people do not show the brands of the products they wear while others do gain social status. Of course, luxury brands are also aware of this.

Where income inequality is high People may turn to luxury consumption in order to be in the upper segments of society.

Moreover with the influence of social media We see that people belonging to the middle class, aiming to be more visible, are turning to luxury branded products as a means of social acceptance and social appreciation.

Luxury brands will also be aware of this so that their products affordable and expensive By keeping it, it both preserves its luxury image and makes these products more accessible to the middle class, which is not very financially comfortable.

The middle class prefers the new money style because they want to be visible.

The reason why people in the middle-income group carry products with the logos of luxury brands as if they were billboards, “Look, I can dress luxuriously” to achieve some form of social acceptance by conveying the message to their social circles.

So for this segment, luxury branded products are a kind of social capital!

When luxury brands hit people hard by using social status and prestige, sometimes logic leaves the stage…

For example, while many sectors were struggling during the pandemic, the fashion industry earned more than normal. So much so that LVMH’s sales increased during the pandemic period. 18% had increased. So, is the source of this increase the 1%? No, middle income class!

The main reason why people spend on luxury during this period is that people spend money on luxury due to the crisis caused by the pandemic. Wanting to live every day as if it were his last. Because they did not know what the future would bring and because of their restricted social lives, they directed their savings not to spend on luxuries.

In summary, those people who use luxury brands are neither very rich nor you very poor. So it’s not really about money.

Here you see, seeking status What does it make people do?

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